<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For Quarter ended March 31, 1996 Commission file number 0-8320
MID-PLAINS TELEPHONE, INC.
(Exact Name of Registrant as Specified in its Charter)
WISCONSIN 39-0274450
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
1912 Parmenter Street, P.O. Box 70, Middleton, Wisconsin 53562
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (608) 831-1000
Indicate by checkmark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
As of March 31, 1996, there were 1,984,024 shares of Common Stock
outstanding.
(Total number of pages - 9)
<PAGE>
MID-PLAINS TELEPHONE, INC.
1st QUARTER REPORT ON FORM 10-Q
INDEX
Page
Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -
March 31, 1996 and December 31, 1995 3 - 4
Consolidated Statements of Income -
Three Months Ended March 31, 1996 and 1995 5
Consolidated Statements of Cash Flow -
Three Months Ended March 31, 1996 and 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results
of Operations 8
PART II. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 9
<PAGE>
MID-PLAINS TELEPHONE, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
March 31, December 31,
1996 1995
In Thousands
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 376 $ 560
Accounts receivable -
Due from subscribers 822 818
Customer sales and services 571 704
Other, principally connecting companies 1,843 2,073
Inventories
Plant materials and supplies 367 376
Communications systems and parts 893 903
Other 292 486
5,164 5,920
PROPERTY, PLANT AND EQUIPMENT
Telephone, in service and under
construction, at original cost 46,695 46,198
Less Accumulated depreciation (17,006) (16,663)
29,689 29,535
INVESTMENT AND OTHER ASSETS
Cellular limited partnership interest 4,374 4,374
Other 423 885
4,797 5,259
$ 39,650 $ 40,714
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 973 $ 973
Notes payable to banks 2,775 4,440
Accounts payable 3,057 2,949
Accrued taxes 581 48
Other 373 588
7,759 8,998
LONG-TERM DEBT 7,363 7,597
DEFERRED CREDITS
Income taxes 3,225 3,230
Investment tax credits 221 236
Other 932 931
4,378 4,397
SHAREHOLDERS' EQUITY
Common stock, par value $3.33-1/3
share; authorized 3,000,000 shares;
issued 1,984,024 and 1,982,960
shares, respectively 6,613 6,610
Additional paid-in capital 5,092 5,059
Retained earnings 8,445 8,053
20,150 19,722
$ 39,650 $ 40,714
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
</TABLE>
<PAGE>
MID-PLAINS TELEPHONE, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
Three Months Ended
March 31, March 31,
1996 1995
In Thousands Except For Per Share Data
<S> <C> <C>
OPERATING REVENUES
Telephone operations
Local network services $ 1,133 $ 983
Network access and long
distance services 3,033 2,834
Other 597 545
System sales and services 1,846 1,384
6,609 5,746
OPERATING EXPENSES
Telephone operations
Plant operations 809 698
Depreciation 829 733
Customer operations 601 620
Corporate operations 657 589
General taxes 275 240
System sales and services
Cost of sales and services 1,216 839
Operating expenses 516 492
4,903 4,211
OPERATING INCOME BEFORE INCOME TAXES 1,706 1,535
Other income 8 4
Interest expense (275) (213)
INCOME BEFORE INCOME TAX EXPENSE 1,439 1,326
Income tax expense 552 501
NET INCOME $ 887 $ 825
Average shares considered outstanding 1,983 1,975
Earnings per share $ .45 $ .42
Cash dividends per share $ .25 $ .23
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
/TABLE
<PAGE>
MID-PLAINS TELEPHONE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
Three Months Ended
March 31, March 31,
1996 1995
In Thousands
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 887 $ 825
Add (Deduct) adjustments to reconcile
net income to net cash provided by
operating activities:
Depreciation 851 756
Deferred income taxes (20) (24)
Change in accounts and other receivables 359 (27)
Change in inventories 19 1
Change in accounts payable 108 (274)
Change in other assets and liabilities 515 1,016
Net cash from operating activities 2,719 2,273
CASH FLOWS FROM FINANCING ACTIVITIES
Repay long-term debt (234) (216)
Change in notes payable to banks (1,665) (350)
Dividends paid (495) (454)
Stock purchase plan 36 63
Net cash used in financing activities (2,358) (957)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (1,075) (773)
Other, net 530 (10)
Net cash used in investing activities (545) (783)
CASH AND CASH EQUIVALENTS
Net increase (decrease) during period (184) 533
Beginning of period 560 186
End of period $ 376 $ 719
Cash paid during the period:
Interest $ 268 $ 209
Income taxes $ 87 $ 69
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
<PAGE>
MID-PLAINS TELEPHONE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The unaudited financial statements included herein have been prepared
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information in footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant
to such rules and regulations, although the Company believes the
disclosures are adequate to make the information presented not
misleading. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes thereto included
in the Company's Form 10-K for the year ended December 31, 1995.
In the opinion of the Company, the accompanying financial statements
contain all adjustments (consisting of normal recurring accruals)
necessary to present fairly the financial position as of March 31, 1996
and December 31, 1995, and the results of operations and cash flows for
the three months ended March 31, 1996 and 1995. The results for the
three months ended March 31, 1996 are not necessarily indicative of the
results of operations which may be expected for the entire year ending
December 31, 1996.
2. On April 29, 1996 the shareholders approved the Company's Restated
Articles of Incorporation. This change included the following effects:
(a) changed the Company's name from Mid-Plains Telephone, Inc. to
Mid-Plains, Inc.; (b) changed the Company's common stock from par value
of $3.33-1/3 per share to no par value per share; and (c) increased the
number of authorized shares of common stock from 3,000,000 to
25,000,000.
<PAGE>
MID-PLAINS TELEPHONE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Net income increased $62,000 for the first quarter 1996 compared to the
first quarter of 1995. The primary factors that influenced the results
of operations are discussed below.
Telephone operating revenues increased $401,000 for the first quarter
of 1996 as compared to the first quarter of 1995. This increase was
due primarily to the growth in the number of access lines served by the
Company.
Telephone operating expenses, which include plant, depreciation and
amortization, customer, corporate, and general taxes, increased by
$291,000 in the first quarter of 1996 as compared to the first quarter
of 1995. Increases in plant and corporate expenses were due primarily
to growth in internal operations. The increase in depreciation of
$96,000 was due to additional plant investment.
System sales and service revenues increased $462,000 for the first
quarter of 1996 as compared to the first quarter of 1995. Cost of
sales, as a percentage of operating revenues, were 66% for the first
quarter of 1996 and 61% for the first quarter of 1995. Operating
expenses increased by $24,000 in the first quarter of 1996 as compared
to the first quarter of 1995.
Interest expense increased $62,000 from the first quarter of 1996 as
compared to the first quarter of 1995 due to increased borrowings.
Income tax expense increased by $51,000 in the first quarter of 1996
as compared to the first quarter of 1995 due primarily to higher levels
of pre-tax income.
LIQUIDITY AND CAPITAL COMMITMENTS
The Company plans to meet its 1996 cash requirements with cash flows
from operations and debt financing. It is anticipated that additional
long-term debt will be used to reduce short-term debt as well as fund
additional plant expansion. Unused bank lines of credit available to
the Company are currently $4.2 million.<PAGE>
MID-PLAINS TELEPHONE, INC.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - (27) Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the
three months ended March 31, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
MID-PLAINS TELEPHONE, INC.
(Registrant)
Date May 13, 1996 /s/Howard G. Hopeman
Howard G. Hopeman, Vice-President and
Chief Financial Officer
Date May 13, 1996 /s/Fredrick E. Urben
Fredrick E. Urben, Vice-President,
Administration & Human Relations, Secretary
& Treasurer<PAGE>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 376
<SECURITIES> 0
<RECEIVABLES> 3,236
<ALLOWANCES> 0
<INVENTORY> 1,260
<CURRENT-ASSETS> 5,164
<PP&E> 46,695
<DEPRECIATION> 17,006
<TOTAL-ASSETS> 39,650
<CURRENT-LIABILITIES> 7,759
<BONDS> 0
0
0
<COMMON> 6,613
<OTHER-SE> 13,537
<TOTAL-LIABILITY-AND-EQUITY> 39,650
<SALES> 0
<TOTAL-REVENUES> 6,609
<CGS> 0
<TOTAL-COSTS> 4,903
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 275
<INCOME-PRETAX> 1,439
<INCOME-TAX> 552
<INCOME-CONTINUING> 887
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 887
<EPS-PRIMARY> .45
<EPS-DILUTED> .45
<PAGE>
</TABLE>
